Asian markets remain cautious even as Donald Trump extends ceasefire with Iran amid talks

Following Donald Trump’s announcement that he would extend the ceasefire with Iran, US futures rose while the currency declined slightly, encouraging cautious optimism among investors. Asian stocks opened a little lower as investors considered how long the turmoil in West Asia would last.The Nikkei 225, the TOPIX and the KOSPI all started lower before inching up ever so slowly.

Contracts for the S&P 500 Index increased by 0.5%, suggesting a recovery in the underlying measure following Tuesday’s second consecutive session of declines due to uncertainties surrounding a new round of US-Iran negotiations. The global benchmark for crude, Brent, declined 0.3%.
Also Read: Brent crude prices remain near the $100 a barrel mark despite Iran ceasefire extensionA day before the ceasefire with Iran was scheduled to expire, Trump declared he was extending it indefinitely, despite the collapse of arrangements for new negotiations between the two nations.

In terms of policy, Federal Reserve nominee Kevin Warsh’s remarks during a Senate confirmation hearing were perceived as somewhat hawkish, while robust retail sales statistics offered a positive assessment of the health of the US economy.

The US dollar index, which gauges the strength of the US dollar relative to a basket of six other currencies, remained stable at 98.415, the highest level since April 13.